Kustom Entertainment to Divest Video Solutions Division for $6M to $8.5M

Written by Emily J. Thompson, Senior Investment Analyst

Source: Globenewswire

Updated: Jan 22 2026

0mins

CYCU-8.87%

Should l Buy CYCU?

Source: Globenewswire

Strategic Shift: Kustom Entertainment has signed a non-binding MOU with Cycurion to divest its video solutions division for an estimated $6 million to $8.5 million, allowing the company to focus on its rapidly growing live event production and online ticketing operations, thereby enhancing its competitiveness in the $100 billion entertainment market.
Liquidity Enhancement: The transaction is expected to provide cash consideration of $1 million to $1.4 million, with the remainder paid in Cycurion preferred stock, a structure that not only offers immediate liquidity but also sets the stage for long-term equity appreciation.
Event Management Expansion: By offloading its video solutions division, Kustom aims to aggressively expand its footprint in the live event management and online ticketing sectors, controlling the entire fan experience from ticket purchase to the final encore, thus increasing market share.
Country Stampede Blueprint: Kustom's flagship event, the Country Stampede Music Festival, will celebrate its 30th anniversary in 2026, and the company plans to leverage this successful model to expand nationwide event production and integrated ticketing services, further solidifying its position in the entertainment industry.

Trade with 70% Backtested Accuracy

Stop guessing "Should I Buy CYCU?" and start using high-conviction signals backed by rigorous historical data.

CYCU

$1.85+Infinity%1D

Analyst Views on CYCU

About CYCU

Cycurion, Inc. is a technology-enabled cybersecurity company. The Company provides network communications and information technology security solutions. It also provides proprietary solutions to federal, state and local government agencies and commercial partners. Its ARx platform is a turnkey Web application protection and managed security solution that combines all the essential cybersecurity layers in a comprehensive platform. It provides comprehensive managed information technology (IT) services to help organizations optimize their technology infrastructure and operations. Its security management solution is designed to help organizations protect their digital assets against various cyber threats. Its Managed Security Service includes 24/7 monitoring, threat detection, incident response, and remediation. Its Consulting and Advisory Services include security control assessments, staff augmentation, digital modernization, security architecture and engineering, and others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Kustom Entertainment Shares Surge 40.28% After Video Division Sale Announcement

Jan 28 2026Benzinga

Stock Surge: Kustom Entertainment Inc. shares jumped 40.28% in after-hours trading to $2.96, reflecting strong market sentiment following the announcement of its video solutions division divestiture.
Video Division Sale Agreement: The company entered a non-binding Memorandum of Understanding with Virginia-based Cycurion Inc. for a transaction valued between $6 million and $8.5 million, with $1 million to $1.4 million in cash and the remainder in Cycurion preferred stock.
Strategic Shift to Live Events: This divestiture allows Kustom to sharpen its focus on live event production and proprietary online ticketing, aligning with its Nasdaq rebranding strategy, as CEO Stanton E. Ross emphasized the significant opportunities in the entertainment sector.
Market Performance Analysis: Kustom's Relative Strength Index (RSI) stands at 43.19, with a market capitalization of $1.69 million; the stock has a 52-week high of $4.48 and a low of $1.80, indicating that its recovery potential needs further confirmation given its proximity to the low end of its range.

Cycurion (NASDAQ:CYCU) to Acquire Kustom Entertainment's Video Division for Up to $8.4M

Jan 22 2026seekingalpha

Acquisition Agreement: Cycurion has signed a memorandum of understanding to acquire Kustom Entertainment's video solutions division, with a transaction value between $6.0M and $8.4M, including $1.0M to $1.4M in cash and the remainder in preferred stock, reflecting the company's confidence in future growth.
Revenue Growth Projection: The acquisition is expected to boost 2026 revenue by approximately $5.1M and add around $8.0M in backlog, providing strong visibility into future revenues and further solidifying the company's market position.
Customer Base Expansion: This transaction will broaden Cycurion's customer reach and enhance its integrated capabilities in the public safety and cybersecurity ecosystem, increasing its competitive edge in the market.
Strategic Implications: The acquisition not only serves as a robust addition to the company's operations but also propels its strategic positioning in the rapidly evolving cybersecurity sector, aiding in the achievement of long-term growth objectives.

Cycurion (CYCU) to Acquire Kustom Entertainment's Video Solutions for $6-8.4 Million

Jan 22 2026Benzinga

Transaction Overview: Cycurion has signed a Memorandum of Understanding to acquire Kustom Entertainment's video solutions division for $6-8.4 million, with $1-1.4 million in cash and the remainder in preferred stock, indicating strong confidence in future growth.
Revenue Growth Expectations: The acquisition is expected to increase Cycurion's revenues by approximately $5.1 million, or 35%, in 2026 compared to 2025, while adding $8 million in backlog from established contracts, further solidifying its market position and enhancing recurring revenue capabilities.
Customer Base Expansion: This acquisition will provide Cycurion access to Kustom's extensive client footprint across all 50 U.S. states and over 30 countries, significantly enhancing its competitiveness in the public safety and enterprise markets and unlocking substantial cross-selling potential.
Market Reaction: Following the announcement, Cycurion's shares rose 3.89% to $2.60, reflecting positive market sentiment towards the acquisition, while Kustom's shares fell 3.26% to $2.08, indicating investor concerns about its future performance.